CAIRO--(BUSINESS WIRE)--After launching its products on JUMIA—the largest e-commerce platform in Africa, China's leading home appliance company KONKA (SZSE: 000016) has recently collaborated with Egypt’s local electrical company HOHO to jointly establish a company to further spread its wings in the African market.
With the saturation of local market demand and increase in raw materials cost, stepping into overseas markets has become a new profit growth point for Chinese home appliance companies. Chang Dong, Assistant President of KONKA Group Co., Ltd., said that the differentiated development strategy serves as the greatest value for KONKA to open up the African market. Prior to KONKA’s entry, Color TV sets mostly came to Africa in traditional trade forms, without any local supply chains and targeted deployments. KONKA’s move may act as a model for Chinese home appliance companies to expand business in the African market.
It is learnt that HOHO was established in 2009, and its current production plant covers an area of 30,000 square meters, boasting a matured industrial production qualification and a strong sales network. KONKA’s cooperation with HOHO in the form of a joint venture will not only facilitate KONKA’s entry into the African market at a faster speed, but also bring benefits to KONKA from the mutual tariff exemption agreements between Egypt and neighboring countries, including the Preferential Tariff Agreement of Arab League, the Preferential Tariff Agreement of African Union Community and the EU Mutual Tariff Exemption Agreement.
At present, KONKA is undergoing strategic transformation and upgradation. In addition to overseas markets, it has made great efforts to various emerging industries, including semiconductors, environmental protection and new materials, with an aim to build up a global platform-based technology company based on its home appliance business.